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Poshmark sales top estimates in its first quarterly report as a public firm, but outlook disappoints; shares fall


Poshmark Inc. signage exterior the Nasdaq MarketSite throughout the firm’s preliminary public providing (IPO) in New York, U.S., on Thursday, Jan. 14, 2021.

Michael Nagle | Bloomberg | Getty Images

Poshmark‘s income topped analysts’ estimates, in its first monetary report since going public in January. But the web vendor of secondhand clothes issued a weaker-than-expected sales outlook for the present quarter.

Poshmark’s inventory tumbled greater than 12% in after-hours buying and selling.

Founder and Chief Executive Manish Chandra mentioned in an interview that demand for attire continues to be suppressed in elements of the U.S., the place tighter Covid restrictions stay in place.

“Different parts of the country are behaving quite differently,” Chandra mentioned, citing Florida as a robust development market the place prospects are looking out Poshmark for clothes and bathing fits, whereas New York continues to be catching up. “So, we are accounting for the state-wide differences.”

For the quarter ended Dec. 31, Poshmark’s loss narrowed to $4.06 million, or 31 cents per share, from a lack of $14.75 million, or $1.20 per share, a 12 months earlier. After adjusting for one-time objects, the corporate earned 5 cents a share throughout the quarter.

Revenue climbed 27% to $69.32 million from $54.74 million a 12 months earlier. That was larger than the common income estimate of $68 million, reported by Refinitiv.

For the first quarter, Poshmark is looking for income to fall inside a vary of $75.5 million to $77.5 million. Analysts had been calling for $79.2 million on common.

“Our platform is super adaptable and flexible,” Chandra mentioned. “That has allowed us to be a growth engine in 2020, compared to a lot of other places that have suffered.”

Poshmark filed to go public in December and opened its first day of buying and selling on the Nasdaq on Jan. 14, at at $97.50 per share. The inventory has fallen since, hitting an all-time intraday low of $44.11 final Friday. Shares closed Thursday up practically 16%, at $59.46.

Founded in 2011, the corporate’s on-line market for secondhand garments, footwear and equipment is akin to eBay and Etsy. Poshmark connects consumers with sellers, who usually listing objects from their very own closet. And it makes cash by taking a reduce of each transaction.

Consumers, particularly youthful ones, are more and more turning to some of these web marketplaces for secondhand items. A lot of gamers wish to achieve market share, together with luxurious consignment website TheRealReal, sneaker reseller StockX and digital thrift retailer ThredUp. The latter filed for its IPO earlier this month.

Poshmark mentioned its rely of lively consumers reached 6.5 million in the fourth quarter, up 20% 12 months over 12 months. The firm defines lively consumers as distinctive customers who’ve bought at the very least one merchandise on the platform in the trailing 12 months, no matter returns and cancellations.

Cowen & Co. has beforehand estimated that the resale market in the U.S. is valued at $30 billion to $35 billion.

Find the complete earnings press launch from Poshmark right here.



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